Berkshire Hathaway shares break $500,000 for the first time
The stock price of Berkshire Hathaway, led by investment guru Warren Buffett, crossed the $500,000 mark for the first time on the 16th.
According to CNBC broadcast on the 16th, Berkshire Hathaway Class A stock closed at $504,400, up 1.3% on the day.
Since the beginning of the year, most stocks have been faltering in the aftermath of the US Federal Reserves aggressive interest rate hike, the Ukraine crisis, and a surge in oil prices.
CFRA Research analyst Kathy Seifert told CNBC that Berkshire Hathaways exposure to energy and utilities and investors positive response to aggressive share buybacks are the result of a combination of the value stock cycle.
Berkshire Hathaways share price is driven by the fact that its operating profit in the fourth quarter of last year soared 45% from the same period of the previous year, showing solid results, and that it made significant book profit from investments in blue-chip stocks such as Apple and Bank of America.
Thanks to the recent rally, Berkshire Hathaways market capitalization surpassed $730 billion, surpassing semiconductor company Nvidia and Facebooks parent company Metaplatform to rank 6th in market capitalization.
At over $600,000 per share, Berkshire Hathaway Class A is considered one of the most expensive stocks in the world, but Buffett says he has no intention of splitting it in the future. Buffett believes that high stock prices are more attractive to value investors who take a long-term approach.
Instead, Buffett issued the Berkshire Hathaway Class B stock in 1996 for small investors. Class B stocks, which closed at $336.11 on the same day, also rose 12% from the beginning of the year.